Great Portland Estates chief exec in Brexit warning to London property market

William Turvill
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Numerous UK property funds have suspended trading this week after the Brexit vote (Source: Getty)

The head of one of London’s biggest landlords, Great Portland Estates, has issued a warning about the effect Brexit uncertainty will have on the capital’s property market.

GPE chief executive Toby Courtauld said he expects London’s commercial property markets to “weaken during this period of uncertainty”.

Read more: Great Portland Estates boosted new lettings despite Brexit fears

He added that the “benefits of lower bond yields and weaker sterling [are] offset by reduced rental growth prospects”.

But Courtauld said GPE is “well positioned” to handle the challenge.

In a trading update on Thursday, he said: “Whilst tenant interest levels are currently healthy for our limited available space, it is likely that the uncertainty created by the EU referendum result will have a negative impact on economic growth in London.

Read more: This is where UK house prices are heading after the Brexit vote

“In the near-term, we expect confidence to reduce and some business investment decisions to be deferred whilst negotiations to establish our trading arrangements with the EU are undertaken.”

His comments come during a week when numerous UK property funds have suspended trading after last month’s Brexit vote.

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